News Release
FOR IMMEDIATE RELEASE CONTACT: Peter J. Mundy
Vice
President – CFO
(631)
739-2000
SENTRY TECHNOLOGY CORPORATION REPORTS FIRST QUARTER RESULTS
RONKONKOMA, New York, May
15, 2006, -- Sentry Technology Corporation (OTC Bulletin Board: SKVY) today
reported financial results for the Company’s first quarter ended March 31,
2006.
Revenues for the first
quarter were $2,708,000, compared to revenues of $2,493,000 reported in the
first quarter of the prior year. Sentry
had a net loss of $730,000, or $(0.01) per share in the first quarter of 2006,
compared to a net loss of $760,000, or $(0.01) per share, in the first quarter
of 2005.
“Sales increased 9% over first quarter last year despite a
decrease in revenue from Lowe’s of $500,000. Non-Lowe’s revenue increased
39% in the first quarter of 2006”, said Peter L. Murdoch, President and CEO of
Sentry Technology Corporation. “We believe that with the significant improvement
in our sales team and the addition of quality international dealers, our
business will continue to grow throughout 2006. Our new orders booked in the
first quarter reached $3.8 million.
Momentum is building as result of the new top tier prospects, the recent
addition of major key accounts and repeat orders of SmartTrack by many of the
world’s largest retailers. In addition
our library business continues to show solid, reliable growth.”
Sentry Technology
Corporation designs, manufactures, sells and installs a complete line of Closed
Circuit Television (CCTV) solutions, Electro-Magnetic (EM) and RFID based
Library Management systems as well as Radio Frequency (RF) and Electro-Magnetic
(EM) EAS systems. The CCTV product line
features SentryVisionâ, SmartTrack, a proprietary,
patented traveling Surveillance System.
The Company’s products are used by libraries to secure inventory and
improve operating efficiency, by retailers to deter shoplifting and internal theft
and by industrial and institutional customers to protect assets and people. For further information, please visit our
website at www.sentrytechnology.com.
This press release may include information that could
constitute forward-looking statements made pursuant to the safe harbor
provision of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements may
involve risk and uncertainties that could cause actual results to differ
materially from any future results encompassed within the forward-looking
statements. Factors that could cause or
contribute to such differences include those matters disclosed in the Company's
Securities and Exchange Commission filings.
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
(In thousands, except per share data)
|
|
Three Months Ended March 31, |
|
|||
|
|
|
2006 |
|
2005 |
|
|
REVENUES: |
|
|
|
|
|
|
Sales |
|
$ 2,285 |
|
$ 1,913 |
|
|
Service,
installation and other revenues |
|
423 |
|
580 |
|
|
|
|
2,708 |
|
2,493 |
|
|
COST AND EXPENSES: |
|
|
|
|
|
|
Cost of
sales |
|
1,256 |
|
980 |
|
|
Customer service expenses |
|
523 |
|
749 |
|
|
Selling,
general and administrative expenses |
|
1,353 |
|
1,221 |
|
|
Research and development |
|
200 |
|
233 |
|
|
|
|
3,332 |
|
3,183 |
|
|
OPERATING LOSS |
|
(624) |
|
(690) |
|
|
INTEREST AND FINANCING EXPENSES |
|
82 |
|
91 |
|
|
LOSS BEFORE INCOME TAXES AND MINORITY INTEREST |
|
(706) |
|
(781) |
|
|
INCOME TAX (BENEFIT) |
|
10 |
|
(17) |
|
|
LOSS BEFORE INCOME TAXES |
|
(716) |
|
(764) |
|
|
MINORITY INTEREST |
|
14 |
|
(4) |
|
|
NET LOSS |
|
$
(730) |
|
$ (760) |
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE |
|
|
|
|
|
|
Basic and diluted |
|
$ (0.01) |
|
$ (0.01) |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES |
|
|
|
|
|
|
Basic and diluted |
|
120,648 |
|
120,551 |
|
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2006 2005
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 638 $ 842
Accounts receivable, less allowance for doubtful
accounts of $84 and
$141, respectively 2,152 2,762
Inventories 2,909 2,709
Prepaid expenses and other current assets 452 318
Total current assets 6,151 6,631
PROPERTY, PLANT AND
EQUIPMENT, net 610 637
GOODWILL 1,564 1,564
OTHER ASSETS 529 563
$ 8,854 $ 9,395
LIABILITIES AND
SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Revolving line of credit and term loan $ 1,507 $ 2,039
Accounts payable 537 489
Accrued liabilities 1,577 925
Obligations under capital leases - current portion 6 6
Deferred income 129 135
Total current liabilities 3,756 3,594
OBLIGATIONS UNDER CAPITAL
LEASES -
non-current portion --- 1
DEFERRED TAX LIABILITY 58 58
CONVERTIBLE DEBENTURES 1,914 1,904
MINORITY INTEREST 1,148 1,140
Total liabilities 6,876 6,697
SHAREHOLDERS’ EQUITY 1,978 2,698
$ 8,854 $ 9,395